Short Strangle + Long Naked Call

The Adjusted Closing price is 12248.25 which is shown on the Daily Charts but on the lower timeframe charts Closing Price is 12252.15
Markets have managed to close above 12250 Level which is a Bullish Sign
Markets may revolve around 12250 zones to Test the Strength of its Support & Resistance, Fibonacci S&R nearest to this zone is 12242.79
Fibonacci Resistance is at 12315 which is Near to 12300 Strike, 12300 has Highest OI on Call Side

Max Pain is at 12200 Strike which is ATM Strike
Some indicators like ADX are not showing strength in Trend or Reversal
On weekly Charts Bearish Engulfing Candle has appeared which shows Bearish Sentiment is still not clear
For Today closing may be near 12250 Zone, making 12250 Strike
Short Strangle :

Short 12300CE
Premium = 48.6

Short 12200PE
Premium = 34.6

Long Call :

Long 12200CE
Premium = -106

Net Premium Debited = 22.8

This Spread will start making Loss below 12225 Level

If the scenario turns out to Bearish we will and Sell 12200CE
The probability that the market may turn out to be Bearish is very less and to increase our accuracy we will only initiate this Spread after spotting SGX Nifty
I will keep you updated.



Happy Trading...

Comment:

SGX NIFTY is down more than 100 Points so its better to wait and not take this trade

Trade active:

Nifty isn't showing signs of weakness in Pre - Market hours so our we will apply our Strangle and Long Naked Call .

Comment:

Add SL in Long Call as markets are turning red
SL will be 10 Points

Loss = 10 * 75

Trade active:

Markets will make 12200 Level ATM today Change in Open Interest on 12200CE Strike is Attractive so going Short on 12200CE @ 51.7 ( 1 Lot )

This will also help us recover loss of 750 Rupees

Trade closed manually:

Loss in 12200 CE as SL was hit = 75 * 10 = 750

Loss in 12200 CE = 74.2 * 75 = 5565

Total Loss = 6315

Profit in 12300 CE = 40.7 * 75 = 3052.5

Profit in 12200 CE = 20.15 * 75 = 1511.25

Total Profit = 4563.75

Net Loss = 1751